Iowa Administrative Code
Agency 781 - TREASURER OF STATE
Chapter 9 - UNCLAIMED PROPERTY
Rule 781-9.5 - Dormancy fees and related charges
Universal Citation: IA Admin Code 781-9.5
Current through Register Vol. 46, No. 19, March 20, 2024
(1) Iowa Code chapter 556 authorizes the following dormancy fees:
a. Lawful charges withheld from abandoned
demand, savings, or matured time deposits held by a financial
organization.
b. Charges on
unpresented traveler's checks and money orders, when a valid and enforceable
contract to assess the charges exists, and the issuer regularly imposes such
charges and does not regularly reverse or otherwise cancel such charges for the
benefit of the owner.
c. Charges on
unpresented checks, drafts, or similar instruments on which a financial
organization is directly liable, when a valid and enforceable written contract
to assess the charges exists, and the holder regularly imposes such charges and
does not regularly reverse or otherwise cancel such charges for the benefit of
the owner.
d. Deductions from the
face value of a gift certificate or gift card resulting from untimely
presentment or usage, when a valid and enforceable written contract was
provided in conjunction with the issuance of the gift certificate or gift card,
and the issuer of the gift certificate or gift card regularly imposes and does
not regularly reverse or otherwise cancel the deduction for the benefit of the
owner.
(2) Dormancy fees not authorized by Iowa Code chapter 556, including but not limited to an escheat fee or other fee sought for the holder's performance of the requirements of Iowa Code chapter 556, are prohibited.
(3) Except for unclaimed accounts of less than $50 at the time of reporting, all dormancy fees assessed against an unclaimed account must be disclosed in the report of unclaimed property filed with the division.
This rule is intended to implement Iowa Code section 556.2.
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